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Forum - Is Cold Calling On The Decline? Does It Even Work?

Is Cold Calling On The Decline? Does It Even Work?

Hi,

when I get the dreaded cold call during my dinner (the one meal I actually get to take my time with) I am usually pretty annoyed. Especially when I have already 'spoken' to several people from the same call center and asked them politely to remove me from the list.

However the number of these calls seems to have declined for me over the last 12 months. Is it because they have finally got the message? Or perhaps they have started shutting down during these economic conditions. Personally I have never even signed up to an offer over the phone, I just don't trust cold callers, so how do they (or did they) make companies any money? Either way there are less calls and I am happy.

Has anyone else noticed a decline?

Hitesh

phoenix247's picture

Hi All,

I would say it is on the decline perhaps due to all the issues with predictive diallers and silent calls. A lot of firms have had their knucklles wrapped by TPS for this and quit rightly so. However having recently called a bunch of lead generation companies for B2B leads we found it difficult to get responses and when we did the costs were atronomical.

Cheers John
Phoenix24-7 24hr Telephone answering services

SL-Freelance's picture

Hi,

I agree with most things everyone is saying out there. I make telephone calls for a living and I also sell Voice Broadcasting, along with Fax and Email Broadcasting. I also advise clients on which Call Centres to use for Cold-Calling. So as someone on the inside of the industry, I can tell you that B2C (calling consumers) is on the decline at present using "real people" to make the calls.

I learned how to make cold calls B2C 25 years ago to pay my way through University. In those days, it was novel and a bit of fun for someone to receive a telephone call in the evening. Before the Internet, multitasking and when Jobs were for Life, people had more time to talk to someone on the telephone. 25 years on, everyone is very busy trying to earn a living, find a new job, look after the kids, and so on. It's become more of an intrusion these days. Another key factor is globalisation and the desire to cut down the costs of making calls.

For an offshore caller in the Far East, making calls to people about a new mobile telephone earns them a lot of money, and people are literally fighting over jobs at call centres. The problem is that their version of English is not the same as ours and Call Centres can often pressurise these people to the hilt to push consumers over the edge. Many of my clients have opted to go down the Recorded Voice route. The problem here is that some greedy clients don't set up the "Don't call me again" system properly and it's giving the industry a bad name again. The whole point of voice recording is to cut down the cost and save the verbal abuse for either party. Unfortunately in business, good manners are on the decline and when I give advice on such matters some people look at me blankly.

If anyone is serious about Telemarketing - have a look at my blog - www.freelancetelemarketing.org.uk - where you'll find the lowdown of what does and what doesn't work when using telemarketing, lead generation and sales opportunity creation.

Many thanks for reading

SimonW's picture

Hi Stephen - thanks for this insightful comment. I think it's important for us consumers to understand what's going on at the other end. I always try to tell myself that the person on the other end of the phone (if it is a person and not a machine) is just earning a crust, like everyone else, and they don't deserve to be spoken to rudely. Generally I find a polite but firm "Sorry, I'm not interested" works - after all, it's not in the telemarketer's interest to waste time trying to sell to someone who is not interested. Just occasionally, I've encountered very pushy sellers; I usually just put the phone down...

Perhaps you'd like to provide us with some advice for small businesses on managing a telemarketing campaign? If so, please email me at editor@marketingdonut.co.uk

Simon

Simon Says Media's picture

I'm still getting cold calls, but the type has changed. I keep getting calls about a car accident I had almost 3 years ago, begging me to let them pursue a claim on my behalf.

I used to get calls from a certain broadband company offering their wares. Now I and my clients are getting calls from SEO and PPC companies.

I know that cold calls work because I know people who've been successfully sold to this way. Cold calls are a successful sales strategy, but many of the companies using this method are only interested in the initial sale. They don't offer value for money or real competence in what they do. The simplest solutions are not identified or are ignored in favour of their one size fits all systems and processes. Their aim is simply to make money and then sometimes run. They're just sales operations, they don't deliver what they promise.

The clients are either unaware of the marginal or dubious value for money and continue paying for crap, whilst others realise they're getting a bad deal and either don't renew or go elsewhere on contract expiry. But they still pay.

Cold calling can be an excellent sales tool provided salespeople are allowed to do their job properly, selling a quality product or service. It should be the start of the company building a great ongoing relationship with its customers. If you have this objective in mind with a cold-call and business strategy, it can work wonders for your company.

FulcrumCr's picture

I think cold calling to homes, or what I call private client calls are slightly on the decline and with good reason.

If you are getting cold calls, subscribe to the TPS http://www.mpsonline.org.uk/tps/ - This means you can register not to receive cold calls, if you do then companies can receive hefty fines when you report them. Just to mention TPS to a cold caller soon stops the bliters!

I have noticed an increase in door - door cold calling, which companies would find much more effective, as you never get a number unavailable when you knock on someone's door and has a far greater impact. So this is likely to cause the demise of telephone cold calling.

In the business world however, It's still going very strong. I also think done properly, cold calling is extremely powerful, but that's a discussion for another day.

eatinbristol's picture

I don't know if we're lumping in cold calling on the phone with people who just turn up, but certainly at home, nothing is more annoying than people turning up and attempting to sell me cheaper gas/electricity, when I clearly have no other information on hand to make a comparison.

I came very close to swearing at a guy the other day who just would not take no for an answer, no matter how many times I told him "I'm not interested", and "I'm not going to sign up". He was offering an "up to" £200 cashback, which might have been an attractive offer, but he wouldn't leave any paperwork without me effectively signing up, so of course I'm not interested.
I do feel moderately sorry for them as it'll be commission based, but on the other hand they have chosen the profession.

The worst one on the phone I've had was Barclays. They make you phone up to activate a new credit card, then spend 10minutes trying to sell you additional services.
I told the woman several times politely I didn't want to waste her time because I wouldn't be buying any, but she persisted to the point where even if I had wanted the product, I wouldn't have bought from her because she was annoying me.

Certainly I'm not getting the calls for kitchens and insurance I used to get. And a company that persisted calling me to ask about a claim for personal injury they said they had proof of (no such accident ever took place) have finally stopped.

ChrisW's picture

I think it's worth distinguishing between cold calling individual consumers and cold calling businesses.

In the B2B world, cold calling is alive and well - I'd guess that cold calling is the single most effective way of making an initial contact with a new lead. A well-planned approach helps you assess how promising a lead is and should mean that they pay a little more attention when you follow up (eg with a sales letter).

B2C cold calling tends to take a completely different approach more akin to spam. Over the last few years, most of the calls I've had have either been phrased as spurious research ("can I ask how many windows your house has") or made by robodiallers with American accents. I'd guess that, like spam, it works well enough to cover the costs, probably by preying on the gullible.

I haven't noticed a decline as thankfully we hardly ever get any cold calls since signing up with the Telephone Preference Service. (But I still get plenty of emails offering help in the trouser department!)

Chris

jamesainsworth's picture

This is an interesting topic of discussion. I think there might have been a reduction in the number of calls and combined with an increase in security and procedures put in place to prevent them we have seen a resulting decrease but i also wonder if resources to fund the cold calling have been diverted elsewhere-such as into email marketing as it is easier to do mass mailouts compared to a more labour intensive one on one phoner.

SimonW's picture

That's a fair point, James - it would be interesting to compare the costs of email and telephone marketing. It would also be interesting to compare response rates, or 'conversions'. But I think there are a couple of things that put poeple off cold-calling:

1) You have no control over the journey (ie, the timing of the call and the next steps)
2) More companies are using automated voices, which is horribly impersonal.

But there's also the awkwardness of having to say 'No' to someone (as opposed to just deleting an email) and the potential for people to become flustered, annoyed and, ultimately, rude. And nobody likes to be rude, really. Yesterday, I was called by what I assume was a double-glazing company. This is how it went:

Phone rings.

Me: Hello?
Caller: Hello, I'm caling from X. Have you thought about having new windows installed recently?
Me: If you're trying to sell me double-glazing, you're wasting your breath.
Caller: I'm not trying to sell you double glazing. I'm trying to give you some rough ideas about double-glazing.
Me: Bye.

Is it any wonder people don't like cold-calling?

clarerwbullock's picture

I got a text message yesterday telling me I could get squillions of pounds for my 'injury'. What injury would this be, I wondered. The time I broke my nose by tripping over whilst running for a train at London Bridge in 2002? Ah yes, that must be it.

shasar's picture

As a freelance telemarketer I am slightly biased, however telemarketing is just another marketing method. There are good guys and ther are bad. The bad guys sadly leave a legacy to which a lot of business people subscribe too and thats poor execution and that may well stem from poor preperation.

Also been mentioned that thinking long term is just as valuable and pipeline generation is key for sustainable business and is more likely to get further business or maybe even referals.

The cold call centre's with automated dialing systems do not help the concept move forward however like direct mail campaigns, periodical advertising etc if carried out in a poor manner they will all fail.

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